Covid-19 pandemic is affecting every sector of world's economy and our everyday life, but what about Cryptocurrencies?

Everything in the capitalist world is connected and affects each other, that means that the ongoing worldwide lockdown is going to strike global and local markets. There are many "zombie" companies and banks in the market, which right now only powers nationwide inflation f.e. in Poland and generates public debt. In times of crisis many people think of gold as a gateway to safe money deposit, and this time it's not different.

If we look at the Google Trends and look up charts for gold there is no doubt that people are digging in...

Here you can see a graph for lat 90 days - rapid change in early march is visible but in comparison to the rest of the given data it's not abnormal

But that ends when you choose to look at the annual statistics...

The change is significant - after global lockdown gold started being an emergency investment option for many people, even for those lacking any knowledge in gold investments or market economics. They generate such a unusual internet traffic and incorporate other ways of accumulating wealth. This process is so intense that many economists predict that the price of gold right now is low in comparison to the value it is going to have in incoming years (links to few interesting articles in the resources section)

The chart provided right below shows how value of gold changed in recent 12 months (as for 07.04.2020; USD$/oz)

But what does it mean for Cryptocurrencies?

As the interest in gold and other forms of investments rises (for example real estate) the Cryptocurrencies world is also going to be stimulated by the incoming capital from newcomers and Crypto "old guard". Growing number of potential investors is going to force the higher price of gold, and make the entry threshold even higher for more people than it already is. That's where Cryptocurrencies comes in - as I mentioned earlier in a article about Google Trends and CC - more and more people are interested in Crypto exchange and many passive income/blockchain sites. Even if the entry level is not so low, it is because of the need of understanding Cryptocurrencies and the laws that they are under - for a newcomer they can be kind of unorthodox, but they don't need a capital as big as in the case of gold or real estate investments. Of course we can't assume that the global crisis is not going to affect CC in a negative way, but it's a thing that we will be able to see in upcoming months. Let's hope for the best!

What are your thoughts? Are we going to be witnesses of golden era of Crypto or maybe it's just a "come and go" trend?

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